Cryptocurrency markets have seen a surge in value in recent times with top coins reaching their all-time high prices in nine months. The extended bearish trend, which got the nickname Crypto Winter, brought market capitalisation down from $800 billion to a little over a $100 billion.
Currently, the entire market is valued at $250 billion, the result of a strong upward movement. It appears that the market depression that made many antagonists of the technology pronounced it dead once again is over.
QBITtimes sought the views of Wes Carlson, Chief Operating Officer for CryptoFish and the host of Let’s Talk Crypto podcast whether the crunch is demystified and a new era of bulls are here.
“I think it depends on your time horizon. If you zoom out on a price chart, enough so that you can see the start of the bitcoin price at say $1, up to now you will notice that the trend is up,” Carlson replied.
From his point of view, there is going to be a near exponential rise with some corrections along the way. He stated:
“Long term view, we have only just begun. It is true however that for just over a year we had a steep decline, but relative to how far up we have come I would say we are far from a ‘depression’. The blow-off top we experienced in December 2017 has led to a healthy correction. Nothing more.”
When asked if the correction is over, he responded that it is hard to say. But it is safe to say things look a lot more bullish and positive than they were four months ago.
Elements Behind Surge
Carlson was not 100% sure of what is shaping the upward trend and believes there has been a lot of pent up demand among long-biased traders. He indicated that markets generally bottom when an entity or large market mover, or group thereof, put in a floor.
His interpretation was that someone with a deep pocket decides not to lower and defends the price level, which then leads to other market movers marking up the price. He explained further:
“A great saying, the bear market ends when the last sellers sell… (not sure who said that). As for how far the upsurge has been, I believe the retail traders and market participants have been swept into the market FOMO. It’s a time for caution, Bitcoin can have very violent moves both ways, and people are very quick to forget that.”
On the idea that the market gains stem from institutional buyers, Carlson noted it had been the case for some time. However, the majority will be laggard, and it is the more adventurous or higher risk appetite ones that are entering. Until legislation is crystal clear, many of the biggest are going to come in with caution and a light touch.
2019 Is A Good Year
Moreover, the COO of CryptoFish agreed that 2019 so far is a good year for Cryptocurrencies and will continue to be like that. “The cat is out of the bag now… you can see big companies and governments standing up and taking notice,” he said. “The Crypto space is awash with good news- all the things we used to dream about back in 2012-2015 are here now, I mean look at the remarkable progress the Lightning network is making, it’s absolutely incredible.”
Last week, news had it that eBay and Whole Foods are going to accept Cryptos as a form of payment for goods. To Carlson, if it is true, then it is mind-blowing.
He told QBITtimes he has been using 3rd party apps like Purse.io since 2016 to buy on Amazon, and it is a little tedious. Therefore, he cannot imagine what full acceptance will do for adoption.
“A favourite fall back for naysayers of Bitcoin has always been you can’t do anything with it, can’t even buy from Amazon or any substantial outlet… this could be the beginning of a tidal wave of acceptance. It’s huge,” the podcast host emphasized.
Impact Of Bad News
In the early days of the space, it would have led to a sudden market downturn. Despite that, the story is different now.
In his opinion, the market cycle is positive when bad news bounces off it. When it is negative (bear), good news bounces off it.
“The market has a lot more participants now, a lot more depth, and it has, to a certain extent, become more mature,” he remarked. “I think it’s important to note that news-driven price movements generally get baked into the price, information that’s available to all doesn’t drive markets.”
At QBITtimes, the position is that we need a bit more time to conclude whether the bears are gone and that it is the moment for bulls to take over. Only time will tell, since no one knows the future, especially when it comes to Cryptosphere.